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International logistics and freight transportation-related knowledge

Time:2021-03-06 Posted:Shenzhen Zhongxinda Logistics Co., Ltd.
I. Main International Logistics Transportation Methods 
1. Sea transportation (most commonly used, low cost) 
Suitable for: Large quantities of goods, non-urgent, container full load/consignment
Features: Large volume, low price, slow delivery
Common terms:
FCL: Full Container Load transportation
LCL: Less than Container Load transportation
Port of origin, port of destination, shipping schedule, voyage distance 
2. Air freight (fast delivery, high price) 
- Suitable for: high-value, small-sized, urgent goods
- Features: fast delivery, high safety, expensive shipping cost
- Common: airport to airport, door to airport, door to door 
3. Land transportation (cross-border road/railway) 
- China-Europe Railway Express, China-Vietnam Road, China-Laos Railway, etc.
- The delivery time is between that of sea transportation and air transportation, and it is highly stable. 
4. Multimodal Transport 
Combination of sea transportation + land transportation, air transportation + land transportation, etc., to achieve one-stop door-to-door logistics. 
II. Core Processes of International Freight (Simplified Version) 
1. Receive order and book shipping → 2. Pick up goods and deliver to warehouse → 3. Declare and inspect
2. Load ship/ship aircraft → 5. International transportation → 6. Clear customs in the destination country
3. Dispatch from the destination country → 8. Completion of receipt confirmation 
III. Key Professional Terms (Essential to Know) 
- Customs declaration: Reporting the information of goods to the customs for legal entry and exit
- Customs clearance: Completing customs review and release after the goods arrive at the destination country
- Bill of Lading (B/L): A document for maritime cargo, a document of title
- Air Waybill (AWB): A document for air cargo
- DDU: Delivery without duty (the seller does not cover the customs duties in the destination country)
- DDP: Delivery with duty paid (the seller covers both the customs duties and the customs clearance to the door)
- FOB: Free on Board, the risk passes to the buyer after the goods are loaded onto the ship
- CIF: Cost, Insurance and Freight, the seller is responsible for the destination port 
IV. What do international freight forwarders do? 
- Booking containers, arranging for trailers, storage and handling
- Assistance with export customs declaration and import clearance
- Preparation of logistics documents such as bills of lading, packing lists, and invoices
- Tracking the entire process of cargo transportation
- Providing logistics solutions, route optimization, and cost calculation
- Handling exceptions: unloading containers, inspections, delays, etc. 
V. Common Service Scope of International Logistics 
- International containerized/less-than-container-load shipping
- International air freight agency
- International land transportation, China-Europe Railway Express
- Domestic logistics, warehousing, loading and unloading operations
- Goods and technology import and export agency
- Logistics solution consultation, time efficiency and cost optimization 
VI. Key Points to Consider in International Logistics 
1. The names, materials and uses of the goods must be accurate. This affects customs declaration and tariffs.
2. The customs policies of the destination country are different. Confirm prohibited or restricted items in advance.
3. The packaging should be sturdy to avoid damage during long-distance transportation.
4. Leave a buffer period for the estimated time (customs inspection, weather, port congestion).
5. It is recommended to purchase insurance to reduce transportation risks.

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